Waterbury evening Democrat., 1887-12-13
The President Supposed to be in Canada. Developments That Will Astonish the Policy Holders-Thc Assets Have Been Diverted-Some Startling Figures.

week with frOSecutlng Attorney farker, or the police court, and as result warrants for the arrest of Parsons, Beecher and flakes were drawn. The matter was kept very quiet, in the belief that President Parsons, who had not been seen for several days, would return to Hartford, but he has not been seen yet, and it was considered expedient to take the others into custody without delay.
 Capt. Hill and Officer Lyman Smith served the warrants on Beecher and Hakes and escorted them through the streets to the police station, where their names were en- tered on the blotter. The warrant accuses Secretary Beecher with having sworn, in the annual report, that the company then owned among it's assets 200 shares of the stock of the New London and Northern road, dated Feb. 27, 1886, which in reality were owned and were then in the possession of the Hartford Fire Insurance company, the par value being $20, 900. The statute provides that every person who shall, upon oath or affirmation, willfully and corruptly make false reports or testify or affirm falsely to any material fact in any matters wherein an oath or affirmation is by this act required or authorized, shall be imprisoned in the state prison not less than one and not more than three years
 Beecher and flakes were taken before Judge Henry, of the police court, and bonds were fixed at 5000 and S2, 900 respectively. c. B. Perkins, of counsel for company, and a relative, gave bonds for Beecher, and Vice. President A. s. Winchester, of the Conti- mental Life, for flakes. hearing is as- signed for Dec. 3l in the police court.
 That President Parsons has fled the coun- try is we'll settled. He was seen in New York Tuesday and from there was traced to Buffalo. Parsons is believed to be the chief offender. His management of the company had been questioned, but no one dared to interfere, and the business was run by him without interference, few directors meet lngs being held; so few, in fact, that some who are now claimed to be directors did not know they were on the board The board as given in this years directory is as fol- lows: John $. Parsons, John s. Welles. William M. Hudson, Lyman B. Jewell. A. 5. Winchester, J. G. Martin, Thomas Rams dell, Robert E. Beecher, Ansel Arnold. Par sons Is president; Winchester, vice-president; Beecher, secretary; Hudson, medical exam iner. Parsons was elected president in 1871.
 At the time of the Hubbard & Farmer sus- pension rumors were circulated that the Continental Life was embarrassed. Insur ance Commissioner Tyler began an inves- tigation, which resulted in his issuing an application to put the company in the hands of a receiver. An in- junction was issued Nov 30, forbidding the company from paying out any money or transferring any of it's property or putting any liens upon it. The result of the investi. gation showed that it is impaired beyond 25 per cent. The commissioner was assisted in his examination by William D. Whiting, of New York
 company Dec. 31, 1886, corresponding with the date of the last annual return made bv the company. On that date the company reports its total assets $2,312,544. The commissioner finds that they were on his es timate of values only $1, ,3S5, ,6sO. 96. The liabilities are found to be $2, O7O C45. with contingent liabilities of S99, 32O The conn pany reports its liabilities as $2, 3125A.1 1.-The assets and value of the unincumbered real estate are cut down from the comnanv,s figures, $245, ,602 40, to $54 176; loans on bonds and mortgages, from $277, ,65S 50 to S158.- 162.39; bonds and stocks from s736. 391. .O9 to $456,39O; bills receivable, from $13y, ,198. IS to S,9417 A. Among the assets are Iarpe blocks of the stock of the Utica Cement company and Standard Cement comnanv Parsons is treasurer of the Utica company and flakes is secretary, while John w. Sted- mund, formerly insurance commissioner of the state, is president. The company's office was at the Continental Life. When the insurance commissioner examined the Con. tinental Life, July, 1887, he was shown as part of its assets 16, ,536 shares of Utica e.. ment company stock. He subsequently, learned that 5000 shares of this stock had been used in raising money for the company. showing that more than the 20 900 shares of capital had been used
 His suspicious were aroused; he made A second visit and asked to see the Utica Cement company stock, and was shown cer- tificates for 1, 536 shares, but was told that the other IF, 900 shares were at Hake's house The conclusion was that old certificates had not been cancelled, but were held by parties who could say they were connected with either company, and the new certificates had been issued as collateral. This left a ful supply at home to show in case of examina. tion.
 By the last annual statement of the Conti. mental Life the company had 7,54 policies in force, of which nearly one-f fourth are on the lives of people in Connecticut.
 At the proceedings for appointment O, receiver last Saturday, counsel for the com pany asked for postponement and also fo, power to employ clerks and counsel to pe, at the exact facts of the company's condi
 tion, expenses to be paid from the funds or
 hand. Counsel for the insurance commis sioner said that the commissioner was satis fed that for the last few years the property had been diverted from the policy holder
 to the benefit of the managers Since las
 January valuable assests have been converted
 into cash and paid away, and other asset
 attached or put up for collateral. Judg,
 Carpenter granted an adjournment to Dec
 %, but declined to modify the injunction tt
 allow counsel to be paid from the funds O
 tho cOTnpanv. He said. HTha f11n1s ho1or<
 employed for such purpose"
 New York's Postoface Business.
 NEW YORK, Dec. l3.-Postmaster Pear
 sons annual report shows that during tn
 year 6S, ,504 registered letters were delivered
 and 10. 1O3O ordinary-these by carrier